Announcement of World Bank Responds to Laogai Research Foundation Allegations on October 23, 1995

The World Bank East Asia & Pacific Region 1818 H Street NW, Washington, DC 20433, USA Contact: Graham Barrett, tel. (202) 458-0344 fax (202) 522-3405 World Bank responds to Laogai Research Foundation allegations Washington, October 23, 1995-The World Bank today expressed its concern at allegations by the human rights activist Mr. Harry Wu that a Bank agriculture project in China was benefitting a number of forced labor camps and People ' s Liberation Army special farms. The Bank has no knowledge of any link between the Tarim Basin Project in Xinjiang Province and the allegations by Mr. Wu about the use of forced labor or associated activities. The World Bank' s procurement policies, respect for human rights and insistence on good governance preclude it from involving forced labor in its projects. It is regrettable that Mr. Wu went public with his allegations without checking his information and assertions with the World Bank. A Bank spokesman made it clear to one of Mr. Wu' s publicists that Mr. Wu would be welcome to discuss his concerns with the Bank this morning or at any other time. Mr. Wu was unavailable to do so today . The World Bank is looking into Mr. Wu' s assertions. If he can substantiate that components of the Tarim Basin project are being implemented with the help of forced labor, the Bank would discuss the issues with the Chinese authorities, whose responsibility is to implement the project. If Bank policies for the use of International Development Association (IDA) funds have been disregarded, the Bank has the option of requesting the repayment of loan funds . The World Bank emphasizes that the Tarim Basin Project, like other Bank projects in China funded by IDA, its concessionary lending arm, is designed to alleviate poverty. The Tarim project, which is in one of China' s poorest and topographically more distressed areas, is helping to rehabilitate irrigation and drainage, among other things, and raising food production, incomes and quality of life for hundreds of thousands of poor people. # # # #